Via Reuters Finance

BRUSSELS (Reuters) – Telenor (TEL.OL) will use equipment from Huawei in building Norway’s 5G network, the telecoms operator said on Sunday, one of several companies to continue working with the Chinese company despite U.S. pressure.

FILE PHOTO: Telenor’s logo is seen in central Belgrade, Serbia, March 21, 2018. REUTERS/Marko Djurica/File Photo

Huawei faces increased official scrutiny in Europe amid U.S. allegations that it poses a security threat. The company rejects the charges.

State-controlled Telenor on Friday picked Sweden’s Ericsson (ERICb.ST) to help roll out its fifth-generation (5G) telecoms network.

Huawei, with which Telenor has collaborated for more than a decade on 4G, will continue to play a role in modernizing its infrastructure, Hanne Knudsen, Telenor vice president for communications, told Reuters.

“Ericsson has been introduced as a new vendor for 5G RAN, but we will also work with Huawei both to maintain the 4G network and also upgrade to 5G coverage in selected areas of Norway,” Knudsen said in response to written questions.

“Huawei has delivered hardware for RAN, but not for the core network. When they will build 5G in selected areas for the modernization, this is also for RAN, not core,” she said.

Telenor’s Finnish subsidiary DNA also uses Huawei as one of several vendors for 5G RAN, Knudsen said.

RAN, or radio access network, refers to the radios and antenna that connect smartphones to the mobile network, and accounts for the bulk of the cost of a new network. It is not the core.

Huawei said it welcomed competition in 5G and looked forward to continuing its collaboration with Telenor.

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Telenor is using Finnish company Nokia (NOKIA.HE) and Ericsson for building its core network.

Telenor Norway boss Petter-Boerre Furberg told Reuters on Friday that Huawei network components would be phased out over the next four to five years.

Last week, Telefonica Deutschland (O2Dn.DE) picked Nokia and Huawei to build its 5G network.

Reporting by Foo Yun Chee; editing by Jason Neely